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6 April, 08:45

Which of these makes this a true statement? When determining the appropriate weights used in calculating a WACC, it should reflect

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  1. 6 April, 08:47
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    When determining the appropriate weights used in calculating WACC, there is need to divide the market value of each stock by market value of the company.

    Explanation:

    Market value of the company is the aggregate of market value of equity, market value of preferred stock and market value of debt. We will divide the market value of each stock by market value of the company in order to obtain the respective weights.
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